HG bonds: Cboe Global Markets prices $300M 2032 issue to back M&A; terms

Cboe Global Markets Inc. today placed $300 million of 3.00% 10-year senior notes at T+120, or 15 basis points through early whispers, as the company funds a portion of its recent acquisition activity.

Cboe on Oct. 20, 2021, announced an agreement to acquire Eris Digital Holdings LLC, or ErisX, which operates a U.S.-based digital asset spot market, a regulated futures exchange and a regulated clearinghouse. The transaction is expected to close in the first half of 2022, subject to regulatory review and other customary closing conditions.

The company intends to use the net proceeds from the bond offering, together with cash on hand and the proceeds of additional borrowings, to fund the ErisX transaction.

On Feb. 25, Cboe amended and restated its revolving credit facility in order to, among other things, increase the commitments to $400 million from $250 million. The commitments may be further increased up to $600 million subject to the agreement of the applicable lenders. The A&E effort also extended the maturity date to Feb. 25, 2027.

Of note, Cboe on Nov. 15, 2021, additionally announced an agreement to acquire Aequitas Innovations Inc., a fintech organization that includes a fully registered Tier-1 Canadian securities exchange. The transaction also is expected to close in the first half of 2022, subject to regulatory review and other customary closing conditions.

The exchange operator's previous tap of the U.S. bond markets dates to December 2020 when it completed a $500 million public offering of 1.625% 10-year senior notes due Dec. 15, 2030, at T+78, primarily backing its acquisition of dark pool trading concern BIDS Trading LP.

The issuer's A-/A3 ratings profile reflects stable outlooks on both sides.

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